DETROIT - Ally Financial Inc. (NYSE: NYSE:ALLY), a leading digital financial services company, has announced the declaration of quarterly cash dividends for its common and preferred stock shareholders. The company's common stock dividend is set at $0.30 per share, scheduled for payment on February 14, 2025, to shareholders who are on record as of January 31, 2025. With a current dividend yield of 3.21%, Ally has maintained consistent dividend payments for 9 consecutive years, according to InvestingPro data.
In addition to the common stock dividend, Ally Financial will pay dividends on its preferred stock. Shareholders of the 4.700% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series B, will receive approximately $15.9 million in total, equating to $11.75 per share. Similarly, the Series C preferred stock shareholders are set to receive a total of approximately $11.8 million, also amounting to $11.75 per share. These payments are due on February 15, 2025, to shareholders recorded by January 31, 2025.
Ally Financial operates the nation's largest all-digital bank and has a significant presence in the auto financing industry. The company is committed to serving its approximately 11 million customers with a comprehensive suite of online banking services, which includes deposits, mortgages, and credit card products, as well as securities brokerage and investment advisory services. Ally also provides corporate finance solutions, offering capital to equity sponsors and middle-market companies, alongside its auto financing and insurance services. Trading at a P/E ratio of 14.76 and below book value with a Price/Book ratio of 0.92, InvestingPro analysis suggests the stock is currently undervalued, with additional insights available in the comprehensive Pro Research Report covering this $11.39 billion financial institution.
The announcement of these dividends underscores Ally Financial's ongoing commitment to return value to its shareholders. This information is based on a press release statement issued by Ally Financial.
In other recent news, Ally Financial has been the subject of several analysts' reports. Truist Securities initiated coverage on the company's stock, assigning a Buy rating and setting a price target of $42.00. The firm sees potential for a rebound in Ally Financial's stock value, despite recent challenges, and predicts a 15% or more upside for the stock over the next two years. Citi also updated its financial model for Ally Financial, leading to a new price target of $55.00, increased from the previous $50.00, while maintaining a Buy rating on the stock.
In recent developments, Ally Financial announced an executive transition with Jason E. Schugel stepping down as Chief Risk Officer to become Senior Operating Adviser, and Stephanie N. Richard filling his previous role. The company also reported robust third-quarter earnings, largely driven by tax credits from electric vehicle leases. The firm's adjusted earnings per share (EPS) came in at $0.95, exceeding estimates from various financial firms including Citi, TD Cowen, and Janney.
Ally Financial's recent developments also include a quarterly dividend announcement of $0.30 for Q4 2024, and its insurance segment reaching a record $384 million in premiums. However, the company saw a decline of $600 million in retail deposits in the quarter. These recent developments provide valuable insights for investors interested in Ally Financial's performance and future prospects.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.